THE BIHAR AND WEST BENGAL (TRANSFER OF TERRITORIES) ACT, 1956 

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ARRANGEMENT OF SECTIONS                                                                                                            

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CHAPTER I 
PRELIMINARY 

SECTIONS 

1. Short title. 

2. Definitions. 

PART II 
TRANSFER OF TERRITORIES 

3. Transfer of territories from Bihar to West Bengal. 

4. Amendment of First Schedule to the Constitution. 

PART III 

REPRESENTATION IN THE LEGISLATURES 

Council of States 

5. Amendment of Fourth Schedule to the Constitution. 

6. Bye-elections to fill vacancies in the Council of States. 

7. Term of office of members of the Council of States. 

House of the people 

8. Provision as to existing House of the People. 

Legislative Assemblies 

9. Allocation of certain sitting members of the Bihar Legislative Assembly. 

10. Duration of Legislative Assemblies of Bihar and West Bengal. 

Legislative Councils 

11. Bihar Legislative Council. 

12. West Bengal Legislative Council. 

Delimitation of Constituencies 

13.  Allocation  of  seats  in  the  House  of  the  People  and  assignment  of  seats  to  State  Legislative 

Assemblies. 

14. Modification of the Scheduled Castes and Scheduled Tribes Orders. 

15. Determination of population of Scheduled Castes and Scheduled Tribes. 

16. Delimitation of constituencies. 

PART IV 

HIGH COURTS 

17. Extension of jurisdiction of, and transfer of proceedings to, Calcutta High Court. 

18. Right to appear in any proceedings transferred to Calcutta High Court. 

19. Interpretation. 

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PART V 

AUTHORISATION OF EXPENDITURE 

SECTIONS 

20. Appropriation of moneys for expenditure in transferred Appropriation Acts. 

21. Distribution of revenues. 

PART VI 

APPORTIONMENT OF ASSETS AND LIABILITIES 

22. Land and goods. 

23. Treasury and bank balances.  

24. Arrears of taxes. 

25. Right to recover loans and advances. 

26. Credits in certain funds. 

27. Assets and liabilities of State undertakings. 

28. Public debt. 

29. Refund of taxes collected in excess. 

30. Deposits. 

31. Provident Funds. 

32. Pensions. 

33. Contracts. 

34. Liability in respect of actionable wrong. 

35. Liability as guarantor of co-operative societies. 

36. Items in suspense. 

37. Power of the Central Government to order allocation or adjustment in certain cases. 

38. Certain expenditure to be charged on the Consolidated Fund. 

PART VII 

ADMINISTRATIVE PROVISIONS 

39. State Financial Corporations. 

40. Temporary provisions as to the continuance of certain existing road transport permits. 

41. Provisions relating to services. 

42. Provisions as to the continuance of officers in the same posts. 

PART VIII 

LEGAL AND MISCELLANEOUS PROVISIONS 

43. Territorial extent of laws. 

44. Power to adapt laws. 

45. Power to construe laws. 

46. Power to name authorities, etc. for exercising statutory functions. 

47. Legal proceedings. 

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SECTIONS 

48. Transfer of pending proceedings. 

49. Right of pleaders to practise in certain Courts. 

50. Effect of provisions inconsistent with other laws. 

51. Power to remove difficulties. 

52. Power to make rules. 

THE SCHEDULE. 

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THE BIHAR AND WEST BENGAL (TRANSFER OF TERRITORIES) ACT, 1956 

ACT NO. 40 OF 1956 

[1st September, 1956.] 

An  Act  to  provide  for  the  transfer  of  certain  territories  from  Bihar  to  West  Bengal  and  for 

matters connected therewith. 

BE it enacted by Parliament in the Seventh Year of the Republic of India as follows:— 

PART I 
PRELIMINARY 

1.  Short  title.—This  Act  may  be  called  the  Bihar  and  West  Bengal  (Transfer  of  Territories)                    

Act, 1956. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “appointed day” means the 1st day of November, 1956; 

(b) “article” means an article of the Constitution; 

(c)  “assembly  constituency”,  “council  constituency”  and  “parliamentary  constituency”  have  the 

same meanings as in the Representation of the People Act, 1950 (43 of 1950); 

(d)  “Election  Commission”  means  the  Election  Commission  appointed  by  the  President  under 

article 324; 

(e)  “law”  includes  any  enactment,  ordinance,  regulation,  order,  bye-law,  rule,  scheme, 
notification or other instrument having the force of law in the whole or in any part of Bihar or West 
Bengal; 

(f) “notified order” means an order published in the Official Gazette; 

(g)  “population  ratio”  means  such  ratio  as  the  Central  Government  may,  by  notified  order,  
specify to be the ratio between the population as ascertained at the last census of the State of Bihar 
excluding the transferred territories and the population as so ascertained of the transferred territories; 

(h) “prescribed” means prescribed by rules made under this Act; 

(i)  “sitting  member”,  in  relation  to  either  House  of  Parliament  or  of  the  Legislature  of  a  State 

means a person who, immediately before the appointed day, is a member of that House; 

(j) “transferred territories” means the territories transferred from the State of Bihar to the State of 

West Bengal by section 3; 

(k) “treasury” includes a sub-treasury. 

PART II 
TRANSFER OF TERRITORIES 

3. Transfer of territories from Bihar to West Bengal.—(1) As from the appointed day, there shall 
be  added  to  the  State  of  West  Bengal  the  territories  which  on  the  1st  day  of  March,  1956,  were    
comprised in— 

(a)  that  portion  of  Kishanganj  sub-division  of  Purnea  district  which  lies  to  the  east  of  the 
boundary  line  demarcated  in  accordance  with  the  provisions  of  sub-section  (2)  by  an  authority 
appointed in  this  behalf  by  the  Central  Government  and  that  portion  of  Gopalpur  thana  of  the  said 
district which lies to the east or north, as the case may be, of the said boundary line; and 

(b) Purulia sub-division of Manbhum district, excluding Chas thana, Chandil than a and Patamda 

police station of Barabhum thana; 

and the said territories shall thereupon cease to form part of the State of Bihar. 

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(2)  The  boundary  line  referred  to  in  sub-section  (1)  shall  be  so  demarcated  as  to  be  generally  two 
hundred yards to the west of the highway in Purnea district connecting Dalkola, Kishanganj and Chopra 
with Siliguri in Darjeeling district and two hundered yards to the south or south-west of the highway in 
Purnea district connecting Dalkola and Karandighi with Raiganj in West Dinajpur district: 

Provided that the boundary line shall be so demarcated as not to cut across any village or town: 

Provided further that from the point where the first-mentioned highway meets the southern boundary 
of Kishanganj municipality to the point where it leaves the northern boundary of that municipality, the 
boundary line shall be the same as the boundary of that municipality on the east. 

(3)  The  territory  specified  in  clause  (a)  of  sub-section  (1)  shall  be  included  in,  and  form  part  of, 
Darjeeling district, and the territory specified in clause (b) of that sub-section shall form a separate district 
to be known as Purulia district within Burdwan division of the State of West Bengal. 

(4) Nothing in sub-section (3) shall be deemed to affect the power of the State Government to alter 
after the appointed day the name, extent and boundaries of any district or division in the State of West 
Bengal. 

4.  Amendment  of  First  Schedule  to  the  Constitution.—As  from  the  appointed  day,  in  the  First 

Schedule to the Constitution, in Part A, in the description of the territories of States,— 

(a) after  the  paragraph relating  to the  territory  of the State  of  Assam,  the  following  paragraphs 

shall be inserted, namely:— 

“The territory of the State of Bihar shall comprise the territories which immediately before 
the commencement of this Constitution were either comprised in the Province of Bihar or were 
being  administered  as  if  they  formed  part  of  that  Province,  but  shall  not  include  the  territories 
specified in sub-section (1) of section 3 of the Bihar and West Bengal (Transfer of Territories) 
Act, 1956. 

The  territory  of  the  State  of  West  Bengal  shall  comprise  the  territories  which  immediately 
before  the  commencement  of  this  Constitution  were  either  comprised  in  the  Province  of  West 
Bengal  or  were  being  administered  as  if  they  formed  part  of  that  Province  and  the  territory  of 
Chandernagore  as  defined in  clause (c)  of  section  2 of  the  Chandernagore (Merger)  Act,  1954, 
and  also  the  territories  specified  in  sub-section  (1)  of  section  3  of  the  Bihar  and  West  Bengal 
(Transfer of Territories) Act, 1956.”; 

(b) in the  1st  paragraph,  the  words,  brackets,  letter  and  figures  “and in the  case of  the  State  of 
West Bengal, shall also comprise the territory of Chandernagore as defined in clause (c) of section 2 
of the Chandernagore (Merger) Act, 1954,” shall be omitted. 

PART III 
REPRESENTATION IN THE LEGISLATURES 
Council of States 

5. Amendment of Fourth Schedule to the Constitution.—As from the appointed day, in the Fourth 
Schedule to the Constitution, in the Table of Seats, for the entries in the second column relating, to Bihar 
and West Bengal, the entries “22” and “16” shall, respectively, be substituted. 

6. Bye-elections to fill vacancies in the Council of States.—As soon as may be after the appointed 
day, bye-elections shall be held to fill the vacancies existing on that day in the seats allotted to Bihar and 
West Bengal. 

7.  Term  of  office  of  members  of  the  Council  of  States.—In  order  that,  as  nearly  as  may  be,         

one-third of the members of the Council of States may retire on the 2nd day of April, 1958, and on  the 
expiration  of  every  second  year  thereafter,  the  President  shall,  after  consultation  with  the  Election 
Commission,  make  by  order  such  provisions  as  he  thinks  fit  in  regard  to  the  terms  of  office  of  the 
members elected under section 6. 

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House of the people 

8. Provision as to existing House of the People.—Nothing in section 3 shall be deemed to affect the 

extent of the constituency of any sitting member of the existing House of the People from Bihar. 

Legislative Assemblies 

9. Allocation of certain sitting members of the Bihar Legislative Assembly.—The sitting members 
of  the  Legislative  Assembly  of  Bihar  representing  the  Thakurganj,  Karandighi,  Para-cum-Chas  and 
Barabazar-cum-Chandil  constituencies  shall,  notwithstanding  the  reduction  in  the  extent  of  those 
constituencies  by  the  transfer  of  portions  thereof  to  West  Bengal,  continue  to  be  members  of  the 
Legislative  Assembly  of  Bihar;  and  the  sitting  members  of  that  Assembly  representing  any  other 
constituency  lying  wholly  or  partly  in  the  transferred  territories  shall,  as  from  the  appointed  day,  be 
deemed to have been elected to the Legislative Assembly of West Bengal and cease to be members of the 
Legislative Assembly of Bihar. 

10.  Duration  of  Legislative  Assemblies  of  Bihar  and  West  Bengal.—The  changes  in  the 
composition of the Legislative Assemblies of Bihar and West Bengal under section 9 shall not affect their 
duration as provided in clause (1) of Article 172. 

Legislative Councils 

11.  Bihar  Legislative  Council.—(1)  Any  reference  in  the  Delimitation  of  Council  Constituencies 
(Bihar)  Order,  1951,  to  the  State  of  Bihar,  Bhagalpur  division  or  Chota  Nagpur  division  shall  be 
construed as excluding the transferred territories from that State or division, as the case may be. 

(2) Every sitting member of the Legislative Council of Bihar representing a council constituency the 
extent of which is altered by virtue of sub-section (1) shall, as from the appointed day, be deemed to have 
been elected to the said Council by that constituency as so altered. 

12.  West  Bengal  Legislative  Council.—(1)  Any  reference  in  the  Delimitation  of  Council 
Constituencies (West Bengal) Order, 1951, to the State of West Bengal, Burdwan division or Darjeeling 
district shall be construed as including the transferred territories to that State, division or district, as the 
case may be. 

(2) In the Table appended to the said Order, in the entry in the second column, against West Bengal 

West (Graduates) Constituency, after the word “Bankura”, the word “Purulia” shall be inserted. 

(3)  Every  sitting  member  of  the  Legislative  Council  of  West  Bengal  representing  a  council 
constituency the extent of which is altered by virtue of sub-section (1) or sub-section (2) shall, as from the 
appointed day, be deemed to have been elected to the said Council by that constituency as so altered. 

Delimitation of Constituencies 

13. Allocation of seats in the House of the People and assignment of seats to State Legislative 
Assemblies.—The number of seats in the House of the People allotted to Bihar and to West Bengal and 
the  number  of  seats  assigned  to  the  Legislative  Assembly  of  each  of  those  States  by  order  of  the 
delimitation Commission under the Delimitation Commission Act, 1952 (1 of 1952), shall be modified as 
follows:— 

Number of seats in the House of the 
People 

Number of seats in the 
Legislative Assembly 

Bihar  . .        . .       . .        . . 

West Bengal   . .      . .        . . 

53 

36 

318 

252 

14.  Modification  of  the  Scheduled  Castes  and  Scheduled  Tribes  Orders.—As  soon  as  may  be 
after the commencement of this Act, the President may, by notified order, make such modifications in the 

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Constitution (Scheduled Castes) Order, 1950, and the Constitution (Scheduled Tribes) Order, 1950, as he 
thinks fit, having regard to the transfer of territories effected by section 3. 

15. Determination of population of Scheduled Castes and Scheduled Tribes.—(1) After the said 
Orders  have  been  so  modified,  the  population  as  at  the  last  census  of  the  Scheduled  Castes  and  of  the 
Scheduled Tribes in Bihar and West Bengal shall be ascertained or estimated by the census authority in 
such manner as may be prescribed and shall be notified” by that authority in the Gazette of India. 

(2)  The  population  figures  so  notified  shall  be  taken  to  be  the  relevant  population  figures  as 

ascertained at the last census and shall supersede any figures previously published. 

16. Delimitation of constituencies.—(1) As soon as may be after the commencement of this Act, the 

Central Government shall, by notified order, appoint an authority— 

(a) to determine on the basis of the population figures notified under section 15 the number of 
seats to be reserved for the Scheduled Castes and the Scheduled Tribes of Bihar and of West Bengal 
in the House of the People and in the legislative Assembly of each of those States having regard to the 
relevant provisions of the Constitution and of this Act; and 

(b) to revise to such extent as may be necessary or expedient having regard to the said provisions, 
the  orders  of  the  delimitation  Commission  made  under  section  8  of  the  Delimitation  Commission     
Act, 1952 (81 of 1952), with respect to Bihar and West Bengal. 

(2) The said authority shall perform its functions in such manner and shall follow such procedure, as 

may be prescribed. 

PART IV 

HIGH COURTS 

17.  Extension  of  jurisdiction  of,  and  transfer  of  proceedings  to,  Calcutta  High  Court.—(1) 

Except as hereinafter provided,— 

(a) the jurisdiction of the High Court at Calcutta shall, as from the appointed day, extend to the 

transferred territories; and 

(b)  the  High  Court  at  Patna  shall,  as  from  that  day,  have  no  jurisdiction  in  respect  of  the 

transferred territories. 

(2) Such proceeding spending in the High Court at Patna immediately before the appointed day as are 
certified  by  the  Chief  Justice  of  that  High  Court  having  regard  to  the  place  of  accrual  of  the  cause  of 
action and other circumstances to be proceedings which ought to be heard and decided by the High Court 
at Calcutta shall, as soon as may be after such certification, be transferred to the High Court at Calcutta. 

(3) Notwithstanding anything contained in sub-sections (1) and (2), but save as hereinafter provided, 
the High Court at Patna shall have, and the High Court at Calcutta shall not have, jurisdiction to entertain, 
hear or dispose of appeals, applications for leave to appeal to the Supreme Court, applications for review 
and other proceedings, where any such proceedings seek any relief in respect of any order passed by the 
High Court at Patna before the appointed day: 

Provided that if, after such proceedings have been entertained by the High Court at Patna, it appears 
to the Chief Justice of that High Court that they ought to be transferred to the High Court at Calcutta, he 
shall  order  that  they  shall  be  so  transferred  and  such  proceedings  shall  thereupon  be  transferred 
accordingly. 

(4) Any order made by the High Court at Patna— 

(a)  before  the  appointed  day  in  any  proceedings  transferred  to  the  High  Court  at  Calcutta  by 

virtue of sub-section (2) or 

(b) in any proceedings with respect to which the High Court at Patna retains jurisdiction by virtue 
of sub-section (3), shall, for all purposes, have effect, not only as an order of the High Court at Patna, 
but also as an order made by the High Court at Calcutta. 

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18. Right to appear in any proceedings transferred to Calcutta High Court.—Any person who 
immediately before the appointed day is an advocate entitled to practise in the High Court at Patna and 
was  authorised  to  appear  in  any  proceedings  transferred  from  that  High  Court  to  the  High  Court  at 
Calcutta under section 17 shall have the right to appear in the High Court at Calcutta in relation to those 
proceedings. 

19. Interpretation.—For the purposes of sections 17 and 18,— 

(a)  proceedings  shall  be  deemed  to  be  pending  in  the  High  Court  at  Patna  until  that  Court  has 
disposed of all issues between the parties, including any issues with respect to the taxation of the cost 
of the proceedings and shall include appeals, applications for leave to appeal to the Supreme Court, 
applications for review, petitions for revision and petitions for writs; 

(b) references to a High Court shall be construed as  including references to a Judge or division 
Court thereof, and references to an order made by a Court or a Judge shall be construed as including 
references to a sentence, judgment or decree passed or made by that Court or Judge. 

PART V 
AUTHORISATION OF EXPENDITURE 

20. Appropriation of moneys for expenditure in transferred Appropriation Acts.—(1) As from 
the appointed day any Act passed by the Legislature of West Bengal before that day for the appropriation 
of any money out of the Consolidated Fund of the State to meet any expenditure in respect of any part of 
the financial year 1956-57 shall have effect also in relation to the transferred territories, and it shall be 
lawful for the State Government to spend any amount in those territories out of the amount authorised by 
such Act to be expended for any service in that State. 

(2) The Governor of West Bengal may, after the appointed day, authorise such expenditure from the 
Consolidated  Fund  of  the  State  as  he  deems  necessary  for  any  purpose  or  service  in  the  transferred 
territories for any period not extending beyond the 31st clay of March, 1957. 

21.  Distribution  of  revenues.—Section  3  of  the  Union  Duties  of  Excise  (Distribution)                   

Act,  1953  (3  of  1953),  and  paragraphs  3,  4  and  5  of  the  Constitution  (Distribution  of  Revenues)            
Order, 1953 shall, in respect of the financial year 1956-57 have effect subject to such modifications as the 
President may, by notified order, specify, having regard to the transfer of territories effected by section 3 
of this Act. 

PART VI 
APPORTIONMENT OF ASSETS AND LIABILITIES 

22. Land and goods.—(1) Subject to the other provisions of this Part, all land and all stores, articles 
and other goods in the transferred territories belonging to the State of Bihar shall, as from the appointed 
day, pass to the State of West Bengal. 

(2)  Any  unissued  stores  of  any  class  in  Bihar  shall  be  divided  between  West  Bengal  and  Bihar  in 
proportion to the total indents for stores of that class made in the period of three years ending with the 
31st day of March, 1956 for the transferred territories and for the rest of Bihar. 

Provided that nothing in this sub-section shall apply to stores held for specific purposes such as use or 
utilisation in particular institutions, workshops or undertakings or on particular works under construction. 

(3) In this section, the expression “land” includes immovable property of every kind and any rights in 

or over such property and the expression “goods” does not include coins, bank notes and currency notes. 

23. Treasury and bank balances.—The total of the cash balances in all treasuries of Bihar and the 
credit balances of Bihar with the Reserve Bank of India immediately before the appointed day shall be 
divided between that State and West Bengal according to the population ratio: 

Provided that for the purposes of such division, there shall be no transfer of cash balances from any 
treasury to any other treasury and the apportionment shall he effected by adjusting the credit balances of 
Bihar and West Bengal in the books of the Reserve Bank of India on the appointed day. 

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24. Arrears of taxes.—The right of Bihar to recover arrears of any tax or duty on property situate in 
the transferred territories, including land revenue, shall belong to West Bengal and the  right of Bihar to 
recover arrears of any other tax or duty in any case where the place of assessment of that tax or duty is in 
the transferred territories shall also belong to West Bengal. 

25. Right to recover loans and advances.—The right to recover any loans or advances made before 
the  appointed  day  by  Bihar  to  any  local  body,  society,  agriculturist  or  other  person  in  the  transferred 
territories shall belong to West Bengal. 

26. Credits in certain funds.—The investments in the cash balance investments account, the famine 
relief fund and the general fund of Bihar and the sums at the credit of Bihar in the central road fund shall 
be divided between Bihar and West Bengal according to the population ratio; and the investments in any 
special fund the objects of which are confined to the transferred territories or any part thereof shall pass to 
West Bengal. 

27.  Assets  and  liabilities  of  State  undertakings.—(1)  The  assets  and  liabilities  relating  to  any 
commercial  or  industrial  undertaking  of  Bihar  located  in  the  transferred  territories  shall  pass  to  West 
Bengal. 

(2) Where a depreciation reserve fund is maintained by Bihar for any such commercial or industrial 
undertaking,  the  securities  held  in  respect  of  investments  made  from  that  fund  shall  also  pass  to  West 
Bengal. 

28.  Public  debt.—(1)  The  public  debt  of  Bihar  attributable  to  loans  raised  by  the  issue  of 
Government  securities  and  outstanding  with  the  public  immediately  before  the  appointed  day  shall 
continue to be the debt of Bihar: 

Provided that— 

(a) West Bengal shall be liable to pay to Bihar a share of the sums due from time to time for the 

servicing and repayment of the public debt; and 

(b)  for  the  purpose  of  determining  the  said  share,  the  said  debt  shall  be  deemed  to  be  divided 

between Bihar and West Bengal as if it were a debt referred to in sub-section (2). 

(2)  The  public  debt  of  Bihar  attributable  to  loans  taken  from  the  Central  Government,  the  Reserve 
Bank  of  India  or  any  other  bank  before  the  appointed  day  shall  be  divided  between  Bihar  and  West 
Bengal in proportion to the total expenditure on all capital works and other capital outlays incurred up to 
the  appointed  day  in  the  territories  of  Bihar  excluding  the  transferred  territories  and  in  the  transferred 
territories, respectively: 

Provided that for the purposes of such division, only expenditure on assets for which capital accounts 

have been kept shall be taken into account. 

(3) Where a sinking fund or depreciation fund is maintained by Bihar for the repayment for any loan 
raised by it, the securities held in respect of investments made from that fund shall be divided between 
Bihar and West Bengal in the same proportion as the public debt referred to in sub-section (2). 

(4) In this section, the expression “Government security means a security created and  issued for the 
purpose of raising a public loan and having any of the forms specified or prescribed under clause (2) of 
section 2 of the Public Debt Act, 1944 (18 of 1944). 

29. Refund of taxes collected in excess.—The liability of Bihar to refund any tax or duty on property 
situate  in  the  transferred  territories,  including  land  revenue,  collected  in  excess  shall  be  the  liability  of 
West  Bengal  and  the  liability  of  Bihar  to  refund  any  other  tax  or  duty  collected  in  excess  in  any  case 
where the place of assessment of that tax or duty is in the transferred territories shall also be the liability 
of West Bengal. 

30. Deposits.—The liability of Bihar in respect of any civil deposit or local fund deposit made in the 

transferred territories shall, as from the appointed day, be the liability of West Bengal. 

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31.  Provident  Funds.—The  liability  of  Bihar  in  respect  of  the  provident  fund  account  of  any 
Government servant who, being in service on the appointed day, is permanently allotted to West Bengal 
shall, as from that day, be the liability of West Bengal. 

32. Pensions.—The liability of Bihar in respect of pensions shall be apportioned between that State 

and West Bengal in accordance with the provisions contained in the Schedule. 

33. Contracts.—(1) Where, before the appointed day, the State of Bihar has made any contract in the 
exercise of its executive power for any purposes of the State that contract shall be deemed to have been 
made in the exercise of the executive power— 

(a) of Bihar, if the purposes of the contract are, as from the appointed day, exclusively purposes 

of that State; 

(b) of West Bengal, if the purposes of the contract are, as from that day, exclusively purposes of 

that State; and 

(c) of Bihar, in any other case; 

and  all  rights  and  liabilities  which  have  accrued,  or  may  accrue,  under  any  such  contract  shall,  to  the 
extent to which they would have been rights or liabilities of Bihar, be rights or liabilities of Bihar or of 
West Bengal, as the case may be: 

Provided  that  in  any  such  case  as  is  referred  to  in  clause  (c),  the  initial  allocation  of  rights  and 
liabilities made by this sub-section shall be subject to such financial adjustment as may be agreed upon 
between the two States, or in default of such agreement, as the Central Government may by order direct. 

(2) For the purposes of this section, there shall be deemed to be included in the liabilities which have 

accrued or may accrue under any contract— 

(a) any liability to satisfy an order or award made by any Court or other tribunal in proceedings 

relating to the contract; and, 

(b) any liability in respect of expenses incurred in or in connection with any such proceedings. 

(3)  This  section  shall  have  effect  subject  to  the  other  provisions  of  this  Part  relating  to  the 
apportionment  of  liabilities  in  respect  of  loans,  guarantees  and  other  financial  obligations,  and  bank 
balances and securities shall, notwithstanding that they partake of the nature of contractual rights, be dealt 
with under those provisions. 

34. Liability in respect of actionable wrong.—Where, immediately before the appointed day, Bihar 
is  subject  to  any  liability  in  respect  of  actionable  wrong  other  than  breach  of  contract,  that  liability 
shall,— 

(a)  if  the  cause  of  action  arose  wholly  within  the  transferred  territories,  be  a  liability  of  West 

Bengal; 

(b)  if  the  cause  of  action  arose  wholly  within  the  territories  of  Bihar  excluding  the  transferred 

territories, be a liability of Bihar; and 

(c) in any other case, be initially a liability of Bihar, but subject to such financial adjustment as 
may  be  agreed  upon  between  that  State  and  West  Bengal,  or  in  default  of  such  agreement,  as  the 
Central Government may by order direct. 

35.  Liability  as  guarantor  of  co-operative  societies.—Where,  immediately  before  the  appointed 
day,  Bihar  is  liable  as  guarantor  in  respect  of  any  liability  of  a  registered  co-operative  society,  that 
liability shall— 

(a) if the area of the society's operations is limited to the transferred territories, be a liability of 

West Bengal; and 

(b) in any other case, continue to be a liability of Bihar. 

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36. Items in suspense.—If any item in suspense is ultimately found to affect an asset or liability of 
the nature referred to in any of the foregoing provisions of this Part, it shall be dealt with in accordance 
with that provision. 

37.  Power  of  the  Central  Government  to  order  allocation  or  adjustment  in  certain  cases.—
Where either Bihar or West Bengal becomes entitled to any property or obtains any benefits or becomes 
subject to any liability and the Central Government, on a reference made within a period of three years 
from the appointed day by either of the States, is of opinion that it is just and equitable that that property 
or those benefits should be transferred to, or shared with, the other State or that a contribution towards 
that liability should be made by the other State, the said property or benefits shall be allocated in such 
manner between the two States, or the other State shall make to the State subject to the liability of such 
contribution  in  respect  thereof,  as  the  Central  Government  may,  after  consultation  with  the  two  State 
Governments, by order determine. 

38.  Certain  expenditure  to  be  charged  on  the  Consolidated  Fund.—All  sums  payable  by  either 
Bihar or West Bengal to the other State by virtue of the provisions of  this Part shall be charged on the 
Consolidated Fund of the State by which such sums are payable. 

PART VII 
ADMINISTRATIVE PROVISIONS 

39.  State  Financial  Corporations.—(1)  As  from  the  appointed  day,  the  Financial  Corporations 
constituted  under  the  State  Financial  Corporations  Act,  1951  (63  of  1951),  for  the  States  of  Bihar  and 
West Bengal shall be deemed to have been constituted for those States with their areas as altered by the 
provisions of section 3. 

(2) Bihar shall be liable to pay to West Bengal on account of its share of the paid-up capital of the 

Bihar State Financial Corporation such amount as the Central Government may by order determine. 

40. Temporary provisions as to the continuance of certain existing road transport permits.—(1) 
Notwithstanding anything contained in section 63 of the Motor Vehicles Act, 1939 (4 of 1939), a permit 
granted by the State Transport Authority of Bihar or by any Regional Transport Authority in Bihar shall, 
if  such  permit  was  immediately  before  the  appointed  day  valid  and  effective  in  any  area  within  the 
transferred territories, be deemed to continue to be valid and effective in that area after that day subject to 
the provisions of that Act as for the time being in force in that area; and it shall not be necessary for any 
such  permit  to  be  countersigned  by  the  State  Transport  Authority  of  West  Bengal  or  by  any  Regional 
Transport Authority in West Bengal for the purpose of validating it for use in such area: 

Provided  that  the  Central  Government  may,  after  consultation  with  the  State  Governments,  add  to, 

amend or vary the conditions attached to the permit by the authority by which the permit was granted. 

(2)  No  toll,  entrance  fee  or  other  charge  of  a  like  nature  shall  be  levied  after  the  appointed  day  in 
respect of any transport vehicle for its operations in the transferred territories under any such permit, if 
such vehicle was immediately before that day exempt from the payment of any such toll, entrance fee or 
other charge for its operations beyond the boundaries of Bihar: 

Provided  that  the  Central  Government  may,  after  consultation  with  both  the  State  Governments, 

authorise the levy of any such toll, entrance fee or other charge, as the case may be. 

41. Provisions relating to services.—(1) Every person who immediately before the appointed day is 
serving in connection with the affairs of Bihar shall, as from that day, continue so to serve, unless he is 
required by general or special order of the Central Government to serve provisionally in connection with 
the affairs of West Bengal. 

(2) As soon as may be after the appointed day, the Central Government shall by  general or special 
order  determine  the  State  to  which  every  person  provisionally  allotted  to  West  Bengal  shall  be  finally 
allotted for service and the date from which such allotment shall take effect or be deemed to have taken 
effect. 

11 

 
 
 
(3)  Every  person  who  is  finally  allotted  under  the  provisions  of  sub-section  (2)  to  Bihar  or  West 
Bengal shall, if he is not already serving therein, be made available for serving in that State from such 
date as may be agreed upon between the two State Governments and in default of such agreement, as may 
be determined by the Central Government. 

(4)  Nothing  in  this  section  shall  be  deemed  to  affect  after  the  appointed  day  the  operation  of  the 
provisions of Chapter I of Part XIV of the Constitution in relation to the determination of the conditions 
of service of persons serving in connection with the affairs of Bihar or of West Bengal: 

Provided that the conditions of service applicable immediately before the appointed day to the case of 
any person provisionally or finally allotted to West Bengal under this section shall not be varied to his 
disadvantage except with the previous approval of the Central Government. 

(5) The Central Government may at any time before or after the appointed day give such directions to 
either  State  Government  as  may  appear  to  it  to  be  necessary  for  the  purpose  of  giving  effect  to  the 
foregoing provisions of this section and the State Government shall comply with such directions. 

42.  Provisions  as  to  the  continuance  of  officers  in  the  same  posts.—Every  person  who, 
immediately  before  the  appointed  day,  is  holding  or  discharging  the  duties  of  any  post  or  office  in 
connection with the affairs of Bihar in any area within the transferred territories shall continue to hold the 
same post or office in West Bengal, and shall be deemed as from that day to have been duly appointed to 
that post or office by the Government of, or other appropriate authority in, West Bengal: 

Provided  that  nothing  in  this  section  shall  be  deemed  to  prevent  a  competent  authority,  after  the 
appointed  day,  from  passing  in  relation  to  any  such person  any  order  affecting  his continuance  in  such 
post or office. 

PART VIII 
LEGAL AND MISCELLANEOUS PROVISIONS 

43. Territorial extent of laws.—The provisions of section 3 shall not be deemed to have effected any 
change  in  the  territories  to  which  any  law  in  force  immediately  before  the  appointed  day  extends  or 
applies, and territorial references in any such law to Bihar or West Bengal shall, until otherwise provided 
by  a  competent  legislature  or  other  competent  authority,  be  construed  as  meaning  the  territories  within 
that State immediately before the appointed day. 

44. Power to adapt laws.—For the purpose of facilitating the application of any law in relation to 
Bihar  or  West  Bengal,  the  appropriate  Government  may,  before  the  expiration  of  one  year  from  the 
appointed day, by order make such adaptations and modifications of the law, whether by way of repeal or 
amendment, as may be necessary or expedient, and thereupon every such law shall have effect subject to 
the adaptations and modifications so made until altered, repealed or amended by a competent authority or 
competent legislature. 

Explanation.—In  this section,  the  expression  “appropriate  Government”  means as  respects  any  law 
relating to a matter enumerated in the Union List the Central Government, and as respects any other law, 
the State Government. 

45. Power to construe laws.—Notwithstanding that no provision or insufficient provision has been 
made for the adaptation of a law made before the appointed day, any Court, tribunal or authority, required 
or empowered to enforce such law may, for the purpose of facilitating its application in relation to Bihar 
or West Bengal, construe the law in such manner, without affecting the substance, as may be necessary or 
proper in regard to the matter before the Court, tribunal or authority. 

46. Power to name authorities, etc. for exercising statutory functions.—The Government of West 
Bengal may, by notification in the Official Gazette, specify the authority, officer or person who, as from 
the appointed day, shall be competent to exercise such functions exercisable under any law in force on 
that day in any part of the transferred territories as may be mentioned in that notification, and such law 
shall have effect accordingly. 

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47. Legal proceedings.—Where, immediately before the appointed day, the State of Bihar is a party 
to any legal proceedings with respect to any property rights or liabilities transferred to the State of West 
Bengal  under this  Act,  that  State  shall  be  deemed  to  be  substituted  for  the  State  of  Bihar  as  a  party  to 
those  proceedings,  or  added  as  a  party  thereto,  as  the  case  may  be,  and  the  proceedings  may  continue 
accordingly. 

48.  Transfer  of  pending  proceedings.—(1)  Every  proceeding  pending  immediately  before  the 

appointed day before a Court (other than a High Court), tribunal, authority or officer— 

(a)  in  any  area  which  on  that  day  remains  within  Bihar  shall,  if  it  is  a  proceeding  relating 
exclusively  to  any  part  of  the  transferred  territories,  stand  transferred  to  the  corresponding  Court, 
tribunal authority or Officer in West Bengal; and 

(b) in any area which on that day falls within the transferred territories shall, if it is a proceeding 
relating  exclusively  to  any  part  of  the  territories  remaining  within  Bihar,  stand  transferred  to  the 
corresponding Court, tribunal, authority or officer in that State. 

(2) if any question arises as to whether any proceeding should stand transferred under sub-section (1), 
it shall be referred to the High Court having jurisdiction in respect of the area in which the Court, tribunal, 
authority or officer before which, or before whom, such proceeding is pending on the appointed day, is 
functioning and the decision of that High Court shall be final. 

(3) In this section,— 

(a) “proceeding” includes any suit, case or appeal; and 

(b) “Corresponding Court, tribunal authority or officer” in a State means— 

(i) the  Court,  tribunal,  authority  or  officer in  which,  or  before  whom,  the  proceeding  would 

have lain if the proceeding had been instituted after the appointed day, or 

(ii)  in  case  of  doubt,  such  Court,  tribunal,  authority  or  officer  in  that  State  as  may  be 
determined after the appointed day by the Government of that State, or before the appointed day 
by the Government of Bihar, to be the corresponding Court, tribunal authority or officer. 

49.  Right  of  pleaders  to  practise  in  certain  Courts.—Any  person  who,  immediately  before  the 
appointed  day,  is  enrolled  as  a  pleader  entitled  to  practise  in  any  subordinate  Courts  in  the  transferred 
territories  shall,  for  a  period  of  six  months  from  that  day,  continue  to  be  entitled  to  practise  in  those 
Courts, notwithstanding that the whole or any part of the territories within the jurisdiction of those Courts 
has been transferred to West Bengal. 

50. Effect of provisions inconsistent with other laws.—The provisions of this Act shall have effect 

notwithstanding anything inconsistent therewith contained in any other law. 

51. Power to remove difficulties.—If any difficulty arises in giving effect to the provisions of this 
Act, the President may by order do anything not inconsistent with such provision which appear to him to 
be necessary or expedient for the purpose of removing the difficulty. 

52. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette, 

make rules to give effect to the provisions of this Act. 

1[(2) Every rule made under this section shall be laid, as soon as may be after it is made, before each 
House of Parliament, while it is in session, for a total period of thirty days which may be comprised in 
one session or in two or more successive sessions, and if, before the expiry of the session immediately 
following the session or the successive sessions aforesaid, both Houses agree in making any modification 
in the rule, or both Houses agree that the rule should not be made, the rule shall thereafter have effect only 
in such modified form or be of no effect, as the case may be; so, however, that any such modification or 
annulment shall be without prejudice to the validity of anything previously done under that rule.] 

1. Subs. by Act 4 of 1986, s. 2 and the Schedule, for sub-section (2) (w.e.f. 15-5-1986). 

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THE SCHEDULE 

(Sec section 32) 

APPORTIONMENT OF LIABILITY IN RESPECT OF PENSIONS 

1. Subject to the adjustments mentioned in paragraph 3, each of the States of Bihar and West Bengal 
shall,  in  respect  of  pensions  granted  by  Bihar  before  the  appointed  day,  pay  the  pensions  drawn  in  its 
treasuries. 

2. Subject to the said adjustments, the liability in respect of pensions of officers serving in connection 
with  the  affairs  of  Bihar  who  retire  or  proceed  on leave  preparatory  to  retirement  before the  appointed 
day, but whose claims for pensions are outstanding immediately before that day, shall be the liability of 
Bihar. 

3. There shall be computed in respect of the period commencing on the appointed day and ending on 
the 31st day of March, 1957 and in respect of each subsequent financial year, the total payments made in 
respect  of  pensions  referred  to  in  paragraphs  1  and  2,  that  total,  representing  the  liability  of  Bihar  in 
respect of pensions shall be apportioned between Bihar and West Bengal in the population ratio, and the 
State paying more than its due share shall be reimbursed the excess amount by the other State. 

4. (1) The liability in respect of the pension of any officer serving immediately before the appointed 
day in connection with the affairs of Bihar, and retiring on or after that day, shall be the liability of the 
State which grants him the pension; but the portion of the pension attributable to the service of any such 
officer before the appointed day in connection with the affairs of Bihar shall be allocated between Bihar 
and West Bengal in the population ratio, and the Government which grants the pension shall be entitled to 
receive from the other Government its share of this liability. 

(2)  If  any  such  officer  was  serving  after  the  appointed  day  for  some  period  in  connection  with  the 
affairs of Bihar and for some period in connection with the affairs of West Bengal, the Government other 
than the one granting the pension shall reimburse to the Government by which the pension is granted an 
amount which bears to the portion of the pension  attributable to his service after the appointed day the 
same  ratio  as  the  period  of  his  qualifying  service  after  the  appointed  day  under  the  reimbursing  State 
bears to the total qualifying service after the appointed day reckoned for the purposes of pension. 

5.  Any  reference  in  this  Schedule  to  a  pension  shall  be  construed  as  including  a  reference  to  the 

commuted value of the pension. 

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